Series 66 - Real estate question

What is the main benefit of owning a REIT over direct ownership of real estate? I understand direct ownership involves a lot of liquidity risk but what else?

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You also get diversification and professional management with a REIT.

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Which would you expect to grow more the REIT or direct investment? I took the 66 last week & this was a question on the test but none of the answers really stood out to me. (i wish i could remember what they were)

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Theoretically, you are taking more risk in a direct investment. Therefore, you should get a higher return. With that said, with investments, you should factor in risk and return. I am a little surprised an exam question would ask which would get you a higher return.

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Just to clarify: 1 of the answer choices was “The REIT would grow more than direct investment”

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